4.7 International marketing

Question 1

International marketing

Answer 1

Selling products in markets other than the original domestic market.

Question 2

Methods of entry into international market:

Answer 2

• exporting
• international franchising
• joint ventures
• licensing
• direct investment
• mergers and takeovers
• e-commerce

Question 3

Exporting (methods of entry into international market)

Answer 3

The firm makes the products at home and sends them to the country of consumption, potentially losing control of the marketing process.

Question 4

International franchising (methods of entry into international market)

Answer 4

A firm sells the right to a franchisee to trade under its name and logo requiring the franchisee to maintain the quality and reputation of its brand.

Question 5

Joint ventures (methods of entry into international market)

Answer 5

A local firm buys the right to produce the goods of a multinational company.

Question 6

Licensing (methods of entry into international market)

Answer 6

Two or more companies join together to fulfil a particular contract, sharing the risks.

Question 7

Direct investment (methods of entry into international market)

Answer 7

A firm produces and distributes products in an overseas market.

Question 8

Mergers and takeovers (methods of entry into international market)

Answer 8

A firm buys a business operating in the country in which it wants to sell.

Question 9

E-commerce (methods of entry into international market)

Answer 9

A method to access global markets.

Question 10

Opportunities posed by entry into an international market:

Answer 10

• Increased profitability
• Diversification/spreading of risk
• Increased brand exposure and recognition
• Legal differences
• Market saturation

Question 11

Threats posed by entry into an international market:

Answer 11

• Social factors
• Technological factors
• Economic factors
• Ethical factors
• Political factors
• Legal factors
• Environmental factors

Question 12

Cultural differences in international marketing:

Answer 12

• different perceptions
• different values and ideologies
• different tastes, attitudes, lifestyles, religious beliefs, customs and rituals

Question 13

Pan-global marketing

Answer 13

Adopting a standardised product across the globe as if the whole world were a single market – selling the same goods in the same way everywhere.

Question 14

Global localisation

Answer 14

Adapting the marketing mix, including differentiated products, to meet national and regional tastes and cultures.

Question 15

Impact of globalisation on business strategy:

Answer 15

• increased international trade as barriers to trade are reduced
• growth of multinational businesses in all countries as there is greater freedom for capital to be invested from one country to another
• freer movement of workers between countries

Question 16

Growing international trade and globalisation leads to:

Answer 16

• increasing competition as markets are deregulated
• changing consumer tastes and preferences as local populations absorb ideas and values imported from abroad through global media
• opportunities for marketing economies of scale